Factory License

To protect the workers and ensure that the owner provides a healthy environment, the government has introduced the Factory Act 1948. As per the Factory Act 1948, every factory owner must register their premises with the local authorities before commencing their business. A factory License acts as a document of approval given by authorities to carry out manufacturing activities. The Department of Factories and Boilers issues Factory License. The Factories and Boilers Department must keep a check on workers' health, safety, and welfare.

Also, a factory registering under the Factories Act, 1948 must obtain its building plan approval from the labour and employment department before covering themselves for a factory registration.

Guidelines to be adhered to by the Factories

The Government Has Laid Down The Guidelines That Are Required To Be Followed By Those Factories Which:

  • Have a minimum of 10 workers and consumer power.
  • Have a minimum of 20 workers and do not consume power.


The factories are broadly divided into two sub-categories depending on the process:
  • Hazardous
  • Non-hazardous
Benefits of Obtaining a Factory License

The main motive for obtaining the factory license is to ensure that appropriate safety measures are adopted to promote the employees' safety, welfare, and health. The benefits of getting a Factory License are mentioned below:

Provides Specific Provision For Employees

The Act specifies the provisions associated with female employees and young people, wages for employees, work hours, working conditions, etc.

Avails Legal Benefits

The factory owner can avail of the legal benefits provided by the government under different schemes.

Enhances Productivity

Proper enactment of compliances and guidelines of the Factories Act, 1948 enhances the employees' productivity.

Documents Required for Obtaining the Factory License
  • Form-1 (Particular of Room in The Factory)
  • Copy of the factory building plan,
  • Id and Address proof of the applicant
  • A detailed list of all directors
  • MOA, AOA, and Board resolution
  • Partnership deed, if any
  • Bank account details
  • Expected Date of commencement of work,
  • Payment receipts
  • Land deeds
  • Consent from all authorities
  • Particulars of equipment
  • Particulars of hazardous and non-hazardous wastes
  • Particulars on raw materials, by product, and finishing product along with the process procedure in a flow chart.
  • Tax receipt.

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